THE UNITED NATIONS ENVIRONMENT PROGRAMME

Transcription

1 1 SUSTAINABLE PUBLIC PROCUREMENT THE UNITED NATIONS ENVIRONMENT PROGRAMME A tool to drive markets towards innovation and sustainability. Opportunities and constraints in the Arab region Regional Preparatory Meeting Series for Rio+20: Meeting on Economic Policies Supporting the Transition to a Green Economy in the Arab Region Beirut, July 2011 farid.yaker@unep.org Monitors the state of the world environment Identifies solutions and supports their implementation international agreements (MEAs) voluntary initiatives innovating approaches in specific domains (water, housing, energy, etc.) Coordinates environmental conventions Develops environment policy instruments t 2 1

2 THE UNITED NATIONS ENVIRONMENT PROGRAMME Priority areas climate change, disasters and conflict, ecosystems management, environmental governance, harmful substances and hazardous waste, resource efficiency sustainable consumption and production OUTLINE Environmental and social challenges Environmental and social challenges What is SPP? Benefits, obstacles and challenges The MTF Approach to SPP The UNEP Capacity building project on SPP and the SPP Initiative 3 2

3 The main environmental and social challenges 5 Increased inequalities 6 The gap between countries is phenomenal: Wealth per capita ranges between: 1,960 dollars for Ethiopia (ratio of 330/1) to 600,000 dollars for Switzerland The world's 225 richest people now have a combined wealth of $1 trillion. That s equal to the combined annual income of the world's 2.5 billion poorest people. One-third of the world s labour force is either unemployed,, under-employed or are working poor Source: UN 3

4 9,5 400 million New Middle Class in Asia Pacific Region 1,6 x 4 6,5 12 trillion dollar (US) market based on USD 30,000 per person spending per year. If they purchase non-environmentally preferable goods and services, enormous additional environmental burden such as climate change. Source Steve Scot

5 Depletion of aquatic resources Loss of biodiversity 9 Global Warming 1 0 At total t of almost 80% of the world's fisheries are fully to overexploited, depleted, or in a state of collapse More than species are threatened with extinction in the world 5

6 Consuming the Environment Two Cups of Coffee a Day The major cause of the continued deterioration of the global environment is the unsustainable pattern of production and consumption, particularly in industrialized countries. United Nations Agenda 21 Report 129 liters of coffee a year. 8 kilograms) of coffee beans 5.5 kilograms of fertilizer including some highly toxic pesticides 19.5 kilograms of coffee pulp Clear cutting of forests to grow even more coffee Birds and bird species disappearing More erosion More pesticides Source Steve Scot 6

7 Resource Consumption Ecological footprint scenarios 1 4 One ton of virgin paper requires 89 tons of resources to produce. A 3 gr. 14-carat gold ring requires 2.8 tons of ore. Source Steve Scot 7

8 OUTLINE Public Procurement: why is it relevant to Sustainable Development? 1 6 Environmental and social challenges What is SPP? Benefits, obstacles and challenges The MTF Approach to SPP The UNEP Capacity building project on SPP and the SPP Initiative Public procurement represents between 8 and 30% of countries GDP States are the # 1 consumers in the economy and therefore have a major responsibility Public procurement can be a major vector in social progress, environmental protection and innovation 8

9 What is Sustainable Public Procurement? Bringing together the procurement and the policy arms of government Harnessing the government s immense buying power in favor of sustainable development goals It is something the best of the private sector is already doing whether as a result of enlightened leadership or shareholder pressure. Something some governments have been doing for years to support local producers, SMEs, minorities and compliance with labor laws Sir Neville Simms in the Foreword to Procuring the Future U.S. Government Purchasing History Clothing sizes during the U.S. Civil War Small Business Administration Automobile airbags Energy-efficient computers Recycled-content paper Source: Steve Scot 9

10 What is Sustainable Public Procurement? Sustainable Procurement is a process whereby organizations meet their needs for goods, services, works and utilities in a way that achieves value for money on a whole life basis in terms of generating benefits not only to the organization, but also to society and the economy, whilst minimizing damage to the environment. Procuring the Future the report of the UK Sustainable Procurement Task Force, June This definition has been adopted by the Swiss led Marrakech Task Force on Sustainable Public Procurement. SPP Price, Performance, & Availability For more information visit Source: Steve Scot 10

11 What is Sustainable Public Procurement? Real value for money Not just acquisition cost but life cycle costing: - costs incurred by the organization over the whole life of the good (usage and maintenance costs, disposal costs) - potential savings - Costs incurred by society as a whole, including negative externalities (CO2 emissions, impacts on health, ) or positive externalities (increased know how, technologies, etc.) over the entire life cycle 11

12 Life Cycle Approach Energy efficient light bulbs Raw Disposal/ Planning Materials Production Procurement Use Recycle The purchasing price should take into account externalities (e.g. CO2 emissions, health impact, etc.) and all usage, maintenance or disposal costs/benefits Traditional 100 W Eco efficient 20 W Life cycle 1 year 8 years Energy conumption 100 W x 8000 h 20 W x 8000 h = 160 kw Price 8 x 1,25 euros = euros euros Usage cost (0,11 euros / kwh) 88 euros 12 euros Total cost for consumer 98 euros 29,6 euros Source: French Environment Ministry 12

13 What is a Green Product? Can be recycled Have a recycled content Be energy efficient Emission reducing Re-usable Biodegradable g Organic Type I Ecolabelling Characteristics Patented Logo Germany Korea Canada EU Japan Nordic Singapore NZ Thai TIWAN India Australia HKFEP TCO USA Philippines Czech Brazil SSNC HK China Indonesia Ukraine Only the best products can be awarded to use the logo; Consumers may buy these products without doubt. 25 Source: IGPN 13

14 Common Labels in the Marketplace GPP a powerful tool Saves money Conserves natural resources Reduces hazardous substances GPP Boosts competitiveness of eco industry Reduces CO2 emissions Foster the uptake of green products Source: IGPN 14

15 Reducing Impacts When recycled materials are used to produce paper, aluminum, and glass, energy consumption can be reduced by up to 95%, water consumption by up to 50%, air pollution by 95%, and water pollution by up to 97%. When scrap iron is used instead of iron ore to make steel, mining wastes are reduced by 97%, air pollution effluents by 80%, and water pollution by 76%. Obstacles Budgetary mechanisms focus on upfront costs - difficulty to integrate the full cost of goods and services in the tender process. Need to exchange on innovative schemes of budgetary mechanisms (multi annualization, etc.) Difficulty to integrate external costs or benefits, especially intangible costs EU starting with the integration of the costs of CO2 emissions. Need to work more closely with the life cycle networks and research centers. Increased regional and international cooperation. Source: Steve Scot 15

16 Difficulties Encountered OUTLINE Some green products (recycled paper, cleaning agents) are more expensive Not enough products to meet various needs Environmental and social challenges Environmental and social challenges What is SPP? Benefits, obstacles and challenges The MTF Approach to SPP The UNEP Capacity building project on SPP and the SPP Initiative Source: Steve Scot 16

17 Capacity Building for Sustainable Public Procurement Marrakech Task Force Approach to SPP In 2008, the Swiss government and UNEP established a partnership to apply - in up to 14 countries worldwide - the MTF on SPP Approach Design of the Capacity building for SPP project Status Assessment e Legal Review Market Readiness Analysis Training Policy Plan Implementation Country implementation 17

18 MarrakechTask Force on Sustainable Public Procurement (MTF on SPP 2004/11) OUTLINE Members: The objective of the MTF on SPP is that 14 countries distributed in all regions will have tested the SPP approach by 2010/11 Task Force led by Switzerland Chaired by: Eveline Venanzoni Swiss Federal Office for the Environment Co-Chaired Chaired by: Sheila Encabo, Philippines China, Argentina, Mexico, Ghana, Philippines, UK, Norway, Czech Republic, USA, State of São Paolo, Switzerland, UNEP, UNDESA, ILO, European Commission Services, ICLEI, IISD Environmental and social challenges Environmental and social challenges What is SPP? Benefits, obstacles and challenges The MTF Approach to SPP The UNEP Capacity building project on SPP and the SPP Initiative 18

19 Capacity Building for Sustainable Public Procurement in Developing Countries Objectives Creation of a pool of SPP experts; Test the MTF Approach on SPP in 7 pilot countries and come up with a revised approach in 2011 Produce policy conclusions to be presented to the CSD Special session on SCP in 2010/2011 Pilot Countries Test the MTF Approach to SPP in pilot countries and come up with a revised approach in 2011 Duration: January 2009 October 2011 Funding: EU funding for Costa Rica, Colombia, Mauritius, Tunisia Switzerland for Uruguay, Chile, Francophonie for Lebanon Cofinancing from pilot countries 19

20 Imple ementation n Plan New project country Establishing a Steering Committee Prioritization Market Readiness Analysis and Legal Review Policy Plan Capacity Building Implementation Where are we now? 135 experts from over 45 countries have been trained on the Marrakech Task Force Approach on Sustainable Public Procurement during 5 regional trainings in 2009 and an international training (Freiburg 2011) The process of revision of the Approach is underway: a consultant (Eco Institut) is gathering the main lessons and conclusions of the project and will submit proposals to be submitted to a Revision Committee. Objective: e: revised version of the MTF Approach to SPP Guidelines. Policy conclusions have been presented to CSD 19 (May 2011) 20

21 Where are we now? Institutional Setup Testing and revising the Approach 21

22 Institutional phase National focal point Designating the National focal point Public procurement authority (Mauritius Chile) Ministry of Environment (Tunisia Costa Rica Colombia) Office and Budget and Planning (Uruguay) Institut of Finance (Lebanon) Institutional phase National focal point Whenever possible, the Public Procurement Authority is the appropriate lead organization for the implementation of the MTF Approach and of SPP. in charge of regulating the public procurement systems, training of procurers designing and implementing the procurement policy usually under the authority of Finance Ministry (strong Ministry) It s not a coincidence that the 2 most advanced countries in the implementation of the Approach are Mauritius and Chile where PPAs are in charge of the project. Major difficulty: lack or insufficient collaboration between PPA and Ministry of Environment which blocks or hampers the implementation of the project 22

23 Institutional phase Steering Committee A number of institutions and organizations should play a key role in the development and implementation ti of SPP policies alongside the Public Procurement Authority: ministry of Environment, Industry, Social Affairs, Chamber of Commerce, NGOs, etc. The steering committee serves as a space for dialogue to strengthen and promote the adoption of a sustainable public procurement action plan. Institutional phase Steering Committee It oversees, legitimizes and institutionalizes the process, approving the various documents and actions arising ii from the application i of the methodology. Steering committee members must have a high political profile with decision making capacity in the institutions they represent. Steering Committees are the embryos of future National SPP task forces 23

24 SPP policies should go hand in hand with the modernization of public procurement There is a perception in some quarters that, where procurement departments are not well developed or where they are still working to bring greater transparency and better governance in public spending, the deployment of SPP may add complexity to this process. In today s reality, procurement systems can legitimately and objectively recognize social and environmental considerations o s alongside ao gsdethose oseof transparency ta spae cyand non discrimination and fair competition. SPP policies should go hand in hand with the modernization of public procurement (2) Modernized PP (e procurement centralized procurement Framework agreements legal improvements) and SPP reinforce each other good procurement is SPP 24

25 Challenges in the Arab world Political willingness environment competing with other urgent matters lack of awareness Institutional constraints Tight budgets, availability of trained procurers Concerns about the possible impact of SPP on procurement principles value for money, competition, etc. or on corruption Limited use of life cycle costing assessments or eco labelling schemes Challenges in the Arab world Manufactured products generally imported, even more so when it comes to green products which may not be available at all Recycling and green products not always profitable in small countries. For these countries, solutions can only be found at the regional level. Concerns about exclusion of SMEs, costs of certifications, etc. 25

26 Lessons Policy Conclusions Political willingness Importance of having the Public procurement authority manage the process of SPP implementation ti in association iti with major stakeholders Importance of having the SPP Project inserted in a global National SCP and SD strategy SPP should be a component of the reform of public procurement (modernization, collaborative schemes/framework agreements, national procurement agency, e procurement, etc.). Savings related to modernization or environmental management could enable SPP policies. Next Steps Second phase of the SPP Project ( ) In 2012, UNEP will launch the second phase of its SPP Project which will build on UNEP s pilot Project ( ). It will use the revised version of the MTF Approach to SPP. 26

27 Next Steps Knowledge Management Center Second phase of the SPP Project ( ) Objectives Assist 20 countries in Africa, Asia, Latin America design and implement SPP policy plans through the revised MTF Approach to SPP Support SPP implementation in the first pilot countries ( ) Develop effective capacity building tools and information networks to support the spread of SPP. Information (Products and Services, human resources, organizations, projects, etc.) Research Knowledge Management Center MTF on SPP methodology Capacity Building Tools Training materials E learning OUTPUTS Guidance documents for procurers Training material s and modules Inform SPP policies and procurement processes 27

28 Terima Kasih! Gracias! 5 5 Thank you! Grazie! Tack! farid.yaker@unep.org 28